Inflation steady in February

The government annonced today that inflation stayed steady in February, in spite of fears that we are headed towards a recession. This is expected to take some pressure off the Federal Reserve, which is considering a new round of cuts in interest rates.

Lower inflation may open the door for the Fed to lower interest rates more aggressively at its next scheduled meeting, on Tuesday. Rate cuts promote growth but devalue the dollar, pushing prices higher. Fed officials have said they were keeping a close eye on inflation developments, but they say staving off a recession remains a top priority.

Consumer confidence has fallen this month, although not as much as economists had feared.

Link [Via NY Times]